The government will investigate the issue of cotton scarcity and high prices, as well as the possibility of the Cotton Corporation of India selling cotton directly to textile mills, said Finance Minister Nirmala Sitharaman on Monday.
Industry representatives raised the issue of high prices and sought a ban on cotton and yarn exports at a meeting organized by textile associations to honour the Finance Minister.
"I take seriously the issue of cotton and yarn shortages, and not only is there a shortage, but prices are also high," the Minister said.
“You should also indicate how to solve the problem. However, the solution proposed by one segment of the textile value chain should not have an adverse impact on another... I will make a decision in collaboration with the relevant ministries after researching whether it is possible to have CCI sell cotton directly to mills," she added.
She urged the industry to coordinate and speak with one voice, as well as to interact with her on a regular basis so that she could gain insight into the units' problems and suggest possible viable solutions. "Better consultation is always important, and it should be available at all times," she says.
There were opportunities now for Indian industries for a variety of reasons, and "we should not let those opportunities pass us by," she said.
The Southern India Mills' Association requested an immediate announcement of the Cotton Technology Mission, and the Confederation of Indian Textile Industry requested an increase in GST for textile processing job work, as most inputs are subject to a 12% or 18% duty.
About Southern India Mills' Association:
Established in 1933 at the initiative of the country's first finance minister, Late Sir R.K. Shanmukham Chetty, to represent the entire textile value chain in South India. Started with 11 members and now has over 500 members from all sectors (fibre to finishing). It has contributed significantly to the development of the textile industry.
Earned goodwill and brand image throughout the textile value chain in the country, particularly with the government; take the lead in all policy-making bodies.
SIMA is now the world's largest employers' organization representing the organized textile industry, as well as the only textile employers' organization with in-house expertise to advise on everything from textile design to marketing.
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